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Intertemporal Choice Shifts in Households: Do they occur and are they good?

  • Carlsson, Fredrik

    ()

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Yang, Xiaojun

    ()

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

We examine whether and to what extent joint choices are more or less patient and time-consistent than individual choices in households. We use data from an artefactual field experiment where both individual and joint time preferences were elicited. We find a substantial shift from individual to joint household decisions. Interestingly, joint decisions do not only generate beneficial shifts, i.e., patient and time-consistent shifts. On the contrary, a majority of the observed shifts are impatient and time-inconsistent shifts. A number of observable characteristics are significantly correlated with these shifts in preferences from individual decisions to joint decisions.

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File URL: http://hdl.handle.net/2077/33591
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Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 569.

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Length: 28 pages
Date of creation: 31 Jul 2013
Date of revision:
Handle: RePEc:hhs:gunwpe:0569
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Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden

Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/

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